Thanks for clarifying the numbers. I think the debate is really between DCA and "invest your savings as you get it", not "lump summing". While there may be a few of us who never save a penny, have a million dollars dropped in our lap, all of which we invest, then never save another dime (lump summing), I'd say most people accumulate savings on a regular basis.

In this case, let's say you DCA and decide to save exactly $800/month. Your savings over three months is $800, $600, then $1000. My savings method is simple: invest your total savings each month. Not sure what a DCAer would do here. Does he lower his monthly investment to $600 because he can't save $800 in the first month? If he earns $1000, does he head to Vegas with the other $200?

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.

Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.